MBDA Capital Readiness Program
Funded Projects
Examples of what this program has supported.
Program Objective
The Minority Business Development Agency’s (MBDA) Capital Readiness Program (Program) was designed to help close the entrepreneurship gap between socially and economically disadvantaged individuals (SEDI) and non-SEDI. This program funded qualified organizations that had the expertise to provide technical assistance for entrepreneurs starting or scaling their businesses who was seeking various forms of capital.
Eligibility
Eligible Applicants
- Nonprofit Organization
- For-Profit Organization
- Other
Eligible applicants are limited to:
• Non-profit organizations,
• Institutions of higher education, and
• Private sector entities (defined as entities that are not public sector entities). This includes, for example, for-profit entities of any type, including sole-proprietorships, partnerships, limited liability companies, and corporations, but does not include public sector entities, such as Federal, State, Local, or Tribal Governments, agencies, or any of their instrumentalities,
• A consortium of two or more of any of the above-mentioned eligible applicants. In a consortium application, there must be a designated lead applicant; the lead applicant would enter into the award agreement with MBDA and assume primary operational and financial responsibility for completing the project should an award be made.
Beneficiaries
- Specific Restrictions (Determined at NOFO Level)
a) a business that is owned and controlled by individuals or whose current majority founders are individuals who have had their access to credit on reasonable terms diminished compared to others in comparable economic circumstances, due to their:
(1) membership in a group that has been subjected to racial or ethnic prejudice or cultural bias within American society;
(2) gender;
(3) veteran status;
(4) limited English proficiency;
(5) disability;
(6) long-term residence in an environment isolated from the mainstream of American society;
(7) membership in a federally or state-recognized Indian Tribe;
(8) long-term residence in a rural community;
(9) residence in a U.S. territory;
(10) residence in a community undergoing economic transitions (including communities impacted by the shift towards a net-zero economy or deindustrialization); or
(11) membership in an underserved community.
b) a business enterprise that certifies that it is owned and controlled by individuals whose residences are in Community Development Financial Institution (CDFI) Investment Areas, as defined in 12 C.F.R. § 1805.201(b)(3)(ii);
c) a business enterprise that certifies that it will build, open, or operate a location in a CDFI Investment Area, as defined in 12 C.F.R. § 1805.201(b)(3)(ii); or
d) a business enterprise that certifies that it is located in a CDFI Investment Area, as defined in 12 C.F.R. § 1805.201(b)(3)(ii).
How to Apply
Award Procedure
Each responsive application was received by an independent, merit review by a panel (Merit Review Panel) qualified to evaluate and rank the applications submitted based on selection criteria. The ranked applications will be forwarded to the Grants Officer for review for completeness and then forwarded to the Selecting Official.
The Selecting Official made the final recommendation to the Grants Officer regarding the funding of applications under the NOFO.
Decision Timeline
- Approval: From 90 to 120 days
All applicants - successful and unsuccessful were notified of their status after the competition completed.
Program details & compliance
Description
The Minority Business Development Agency’s (MBDA) Capital Readiness Program (Program) was designed to help close the entrepreneurship gap between socially and economically disadvantaged individuals (SEDI) and non-SEDI. This program funds qualified organizations that have the expertise to provide technical assistance for entrepreneurs starting or scaling their businesses who are seeking various forms of capital.
This program is no longer making new awards, but existing projects are still active.
Mission Categories
Primary: Minority Business Enterprise
Other categories:
Small BusinessEconomic Development
Use of Funds
Allowed Uses
• Assisted startups and small businesses or expand existing businesses by providing critical technical assistance strategies and services.
• Helped SEDI enterprises secure growth capital (equity, debt, and grants).
• Cultivated a network of partners to close the entrepreneurship and wealth gaps in regions across the nation.
Restrictions
The following activities and associated costs are not allowable under this Program. Such costs may not be charged to the Federal share or matching share of the award.
• Construction: Construction activities are not allowable under this program. For the purposes of an award made pursuant to this NOFO, construction includes any activity that disturbs the ground or modifies a structure.
• Equity Investments & Loans: The use of award funds for equity investments, loans, or grants to entrepreneurs or businesses is not allowable under this program. Thus, the cost of any equity investment, loan, or grant is not an allowable cost under an award. Neither Federal nor matching share funds may be invested in startups or other companies, whether through equity, debt, hybrid, or another mechanism. Similarly, services funded by Federal or matching share cannot be exchanged for equity or otherwise used as the basis for an equity stake in a company. However, an award recipient may make such investments with outside funds that are not Federal or matching share funds under the award
Required Documentation
The application was submitted through grants.gov during an open competition period. Information to apply was announced via grants.gov and the agency's website.
Matching Requirements
A non-Federal cost share of the Federal funding is required for each budget year based on the Tier Structure shown in Section II.A. The range of the required cost share is 10% - 25% depending on the tier of the award amount request (see Section II.A, above). All cost sharing or matching must be consistent with the requirements of 2 CFR 200.306. Awardees may meet the non-Federal matching requirement by using (i) cash or in-kind contributions, without regard to whether the contribution is made by a third party if the contributions meet the requirements in 2 CFR 200.306(b)(1)-(7); and (ii) Federal funds received from other Federal programs only if those programs allow funding to be used for cost sharing purposes. If contributions include Federal funds received from other Federal programs, the applicant must attest that such program funding may be used for cost sharing purposes. In-kind contributions must be documented and must be directed towards eligible project costs and meet applicable Federal cost principles and other requirements of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR Part 200.
Revenue may be, but is not required to be, generated from fees for service, client fees, membership fees, or other appropriate fees associated with services or activities funded through this Program as long as they are approved by MBDA. Any income generated may be used towards the matching requirement unless the matching requirement is met from other cash or inkind sources. Any income generated in excess of the matching requirement must be used to carry out the activities of the program authorized by the award (2 C.F.R. 200.307(e)(2)). Awardees cannot charge fees so high that Program-funded services and activities are not accessible to a broad range of SEDI entrepreneurs and SEDI-owned businesses.
MBDA may determine, based upon a demonstration by the applicant of substantial need, that the applicant shall not be required to provide the full match with respect to the funding to be provided. To qualify for a waiver, an applicant must submit a request with the application, including a justification for the waiver, supporting documentation, and the amount being sought.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart B — General Provisions
- Subpart C — Pre-Federal Award Requirements
- Subpart D — Post-Federal Award Requirements
- Subpart E — Cost Principles
- Subpart F — Audit Requirements